(Yicai Global) Nov. 16 -- China’s clamp down on cryptocurrency mining is of great significance for advancing energy conservation, achieving carbon neutral goals as scheduled and optimizing industrial structure, a spokesperson for the National Development and Reform Commission said today.

The NDRC will implement a thorough crackdown on Bitcoin mining activities, especially those found to be taking place in state-run firms, Meng Wei said. Cryptocurrencies are not real currencies and shall not and cannot be circulated on the market as currencies. They are virtual goods which are not issued by monetary authorities and do not have legal status.

Virtual currency-related businesses are illegal financial activities, Meng said. Crypto’s blind and disorderly development has a serious negative impact on high-quality economic and social growth, its enormous energy consumption thwarts the country’s low emission targets and it does not have a positive impact on scientific progress or industrial development.

The government has long expressed its distaste for non-legit e-currencies. In May, the country’s cabinet called for a crackdown on crypto mining, saying that virtual currencies have no real value and their price can be easily manipulated. Since then, Bitcoin mines across the country have been shut down and crypto trading channels blocked.

Last week the NDRC held a video conference in which it instructed its branches across the country to find and clean up local e-coin mining activities and to in particular punish any state-run firms found to be involved. High fines will be imposed if miners are using residential electricity tariffs.

Editor: Kim Taylor